Clarivate Reports Third Quarter 2026 Results, Delivering Clear Path to Value Creation
CLARIVATE PLC (CLVT) filed an SEC Form 8-K — Results of Operations and Financial Condition. 1 Clarivate Reports Third Quarter 2026 Results, Delivering Clear Path to Value Creation — Improved recurring organic revenue growth driven by portfolio transformation and AI-led innovation — — Updates 2026 financial outlook following the divestiture of Life Sciences & Healthcare
How this was made
The 30-second read
Why it matters
The earnings release introduces new financial metrics that could shift investor sentiment and affect the stock price in the near term.
Market read
The report delivers fresh guidance and financial results, offering traders actionable insight into Clarivate's short‑term outlook.
What to watch
The completed LS&H divestiture improves cash flow and leverage, which may be undervalued by the market.
Clarivate Reports Third Quarter 2026 Results, Delivering Clear Path to Value Creation
Continuing-operations organic revenue grew 0.4% and organic ACV grew 1.8%, while total continuing-operations revenue declined 9.2% because of disposals. Adjusted EBITDA margin expanded to 45.3%, but GAAP net loss widened and free cash flow declined.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Three months ended September 30, 2026 revenues, including discontinued operationsGAAP | $567.9M | – | (8.9)% |
| Three months ended September 30, 2026 revenues, continuing operationsGAAP | $481.6M | – | (9.2)% |
| Three months ended September 30, 2026 organic revenues, continuing operationsother | 0.4% | – | 0.4% |
| Three months ended September 30, 2026 organic ACV, continuing operationsother | 1.8% | – | 1.8% |
| Three months ended September 30, 2026 total ACV growthother | 3.6% | – | 3.6% |
| Three months ended September 30, 2026 subscription revenues, continuing operationsGAAP | $338.3M | – | 0.7% |
| Three months ended September 30, 2026 organic subscription revenue growthother | 1.5% | – | 1.5% |
| Three months ended September 30, 2026 re-occurring revenues, continuing operationsGAAP | $105.8M | – | 0.5% |
| Three months ended September 30, 2026 organic re-occurring revenue growthother | 0.7% | – | 0.7% |
| Three months ended September 30, 2026 recurring revenues, continuing operationsGAAP | $444.1M | – | 0.7% |
| Three months ended September 30, 2026 organic recurring revenue growthother | 1.3% | – | 1.3% |
| Three months ended September 30, 2026 transactional revenues, continuing operationsGAAP | $37.5M | – | (57.9)% |
| Three months ended September 30, 2026 organic transactional revenue growthother | (12.4)% | – | (12.4)% |
| Three months ended September 30, 2026 cost of revenues, continuing operationsGAAP | $139M | – | – |
| Three months ended September 30, 2026 selling, general and administrative costs, continuing operationsGAAP | $134.6M | – | – |
| Three months ended September 30, 2026 depreciation and amortization, continuing operationsGAAP | $162.3M | – | – |
| Three months ended September 30, 2026 restructuring costs, continuing operationsGAAP | $4.5M | – | – |
| Three months ended September 30, 2026 total operating expenses, continuing operationsGAAP | $441.5M | – | – |
| Three months ended September 30, 2026 operating income, continuing operationsGAAP | $40.1M | – | – |
| Three months ended September 30, 2026 income loss from continuing operations, net of taxesGAAP | −$26.4M | – | – |
| Three months ended September 30, 2026 net loss, including discontinued operationsGAAP | $80.8M | – | N/M |
| Three months ended September 30, 2026 diluted EPS, continuing operationsGAAP | $ (0.04) | – | –% |
| Three months ended September 30, 2026 diluted EPS, discontinued operationsGAAP | $ (0.09) | – | N/M |
| Three months ended September 30, 2026 diluted EPS, including discontinued operationsGAAP | $ (0.13) | – | N/M |
| Three months ended September 30, 2026 adjusted net income, including discontinued operationsnon-GAAP | $136M | – | 14.0% |
| Three months ended September 30, 2026 adjusted diluted EPS, including discontinued operationsnon-GAAP | $0.21 | – | 16.7% |
| Three months ended September 30, 2026 adjusted EBITDA, continuing operationsnon-GAAP | $218.2M | – | (1.8)% |
| Three months ended September 30, 2026 adjusted EBITDA margin, continuing operationsnon-GAAP | 45.3% | – | – |
| Three months ended September 30, 2026 adjusted EBITDA, including discontinued operationsnon-GAAP | $245.3M | – | (2.8)% |
| Three months ended September 30, 2026 adjusted EBITDA margin, including discontinued operationsnon-GAAP | 43.2% | – | – |
| Three months ended September 30, 2026 net cash provided by operating activities, including discontinued operationsGAAP | $165.6M | – | (8.6)% |
| Three months ended September 30, 2026 free cash flow, including discontinued operationsnon-GAAP | $110.2M | – | (4.6)% |
| Nine months ended September 30, 2026 revenues, including discontinued operationsGAAP | $1.74B | – | (5.3)% |
| Nine months ended September 30, 2026 revenues, continuing operationsGAAP | $1.47B | – | (4.8)% |
| Nine months ended September 30, 2026 organic revenues, continuing operationsother | 0.1% | – | 0.1% |
| Nine months ended September 30, 2026 recurring revenues, continuing operationsGAAP | $1.33B | – | 1.4% |
| Nine months ended September 30, 2026 organic recurring revenue growthother | 0.9% | – | 0.9% |
| Nine months ended September 30, 2026 net loss, including discontinued operationsGAAP | $389.6M | – | N/M |
| Nine months ended September 30, 2026 adjusted net income, including discontinued operationsnon-GAAP | $378.4M | – | 11.8% |
| Nine months ended September 30, 2026 adjusted diluted EPS, including discontinued operationsnon-GAAP | $0.59 | – | 20.4% |
| Nine months ended September 30, 2026 adjusted EBITDA, continuing operationsnon-GAAP | $645.6M | – | (0.1)% |
| Nine months ended September 30, 2026 adjusted EBITDA margin, continuing operationsnon-GAAP | 43.8% | – | – |
| Nine months ended September 30, 2026 adjusted EBITDA, including discontinued operationsnon-GAAP | $733.7M | – | (1.8)% |
| Nine months ended September 30, 2026 net cash provided by operating activities, including discontinued operationsGAAP | $399M | – | (14.9)% |
| Nine months ended September 30, 2026 capital expendituresGAAP | −$165.9M | – | – |
| Nine months ended September 30, 2026 free cash flow, including discontinued operationsnon-GAAP | $233.1M | – | (15.6)% |
| Cash and cash equivalents, including restricted cash, as of September 30, 2026GAAP | $257M | – | – |
| Total debt outstanding as of September 30, 2026GAAP | $4.18B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Academia & Government, three months ended September 30, 2026Organic revenue growth was 0.9%; disposals contributed (14.1)% and FX contributed (0.5)%. | $286.9M | – | (13.7)% |
| Intellectual Property, three months ended September 30, 2026Organic revenue growth was (0.4)%; disposals contributed (0.6)% and FX contributed (0.6)%. | $194.7M | – | (1.6)% |
| Academia & Government, nine months ended September 30, 2026Organic revenue growth was 1.1%; disposals contributed (8.9)% and FX contributed 0.3%. | $882.2M | – | (7.5)% |
| Intellectual Property, nine months ended September 30, 2026Organic revenue growth was (1.3)%; disposals contributed (0.3)% and FX contributed 1.1%. | $590.2M | – | (0.5)% |
Full Year 2026 Outlook and Q4 2026 Outlook, excluding discontinued operations except as specified in the release outlook
- RevenueFull Year 2026: $1.965B to $1.985B; Q4 2026: $490M to $510M
- NoteACV Organic Growth: Full Year 2026 1.75% to 2.25%; Q4 2026 1.75% to 2.25%.
- NoteRecurring Organic Revenue Growth: Full Year 2026 1.00% to 1.50%; Q4 2026 2.00% to 2.50%.
- NoteAdjusted EBITDA: Full Year 2026 $0.865B to $0.885B; Q4 2026 $215M to $235M.
- NoteAdjusted EBITDA Margin: Full Year 2026 43.0% to 45.0%; Q4 2026 44.0% to 46.0%.
- NoteAdjusted Diluted EPS: Full Year 2026 $0.73 to $0.77; Q4 2026 $0.14 to $0.18.
- NoteFree Cash Flow: Full Year 2026 $320M to $340M; Q4 2026 $85M to $105M.
- NoteFull year 2026 Adjusted diluted EPS includes results from discontinued operations for the nine months ended September 30, 2026 and excludes results from discontinued operations for the three months ended December 31, 2026.
- NoteFull year 2026 Free cash flow includes results from discontinued operations for the nine months ended September 30, 2026 and excludes results from discontinued operations for the three months ended December 31, 2026.
Capital returns
- Repurchases of ordinary shares were $18.1 million during the nine months ended September 30, 2026, compared to $149.5 million during the nine months ended September 30, 2025.
- Principal payments on debt were $284.2 million during the nine months ended September 30, 2026.
- A $100.0 million accelerated debt repayment in January 2026 resulted in the full redemption of the senior secured notes due November 2026.
- The company retired $192.6 million aggregate principal of senior secured notes due 2028 and senior notes due 2029 through debt repurchases at an approximate 5% discount to par.
What drove it
- Organic subscription revenue increased 1.5%, primarily due to new sales and pricing actions.
- Organic re-occurring revenue increased 0.7%, primarily due to higher IP volumes.
- Organic transactional revenue declined 12.4%, primarily due to lower activity across both segments and customer migration to higher margin subscription products.
- Organic ACV growth of 1.8% was primarily driven by improved product pricing.
- Third-quarter continuing-operations adjusted EBITDA margin was 45.3%, compared to 41.9% in the prior-year quarter.
- The third-quarter net loss included a $62.2 million non-cash LS&H goodwill impairment charge.
Concerns
- Continuing-operations revenue declined 9.2% year over year, primarily due to inorganic disposals.
- Intellectual Property organic revenue declined (0.4)% in the third quarter and (1.3)% in the first nine months.
- Transactional revenue declined $51.6 million, or (57.9)%, in the third quarter.
- Nine-month free cash flow declined (15.6)% year over year.
- Net loss including discontinued operations widened to $80.8 million in the third quarter and $389.6 million in the first nine months.
- Total debt outstanding was $4,176.1 million as of September 30, 2026.
What to watch
- Q4 2026 recurring organic revenue growth outlook of 2.00% to 2.50%.
- Q4 2026 ACV organic growth outlook of 1.75% to 2.25%.
- Q4 2026 revenue outlook of $490M to $510M and adjusted EBITDA outlook of $215M to $235M.
- Q4 2026 free cash flow outlook of $85M to $105M.
- Progress translating AI-led innovation and product pricing into sustained organic growth.
- Use of the $488.4 million in net cash proceeds from the LS&H sale and further debt reduction.
Balance sheet and cash flow
- Cash and cash equivalents, including restricted cash, were $257.0 million as of September 30, 2026, compared to $329.2 million as of December 31, 2025.
- Total debt outstanding was $4,176.1 million as of September 30, 2026, a decrease of $293.8 million compared to the prior year.
- Long-term debt was $4,136.8 million as of September 30, 2026, compared to $4,321.5 million as of December 31, 2025.
- On October 6, 2026, the company completed the sale of the LS&H segment for net cash proceeds of $488.4 million.
- Nine-month operating cash flow was $399.0 million, compared to $468.6 million in the prior-year period.
- Nine-month free cash flow was $233.1 million, compared to $276.1 million in the prior-year period.
Analysis
Clarivate reported $481.6 million of third-quarter continuing-operations revenue, down (9.2)% from $530.3 million, as inorganic disposals reduced reported revenue. Underlying growth was positive but limited: organic revenue increased 0.4%, organic subscription revenue increased 1.5%, organic re-occurring revenue increased 0.7%, and organic ACV grew 1.8%. Transactional revenue was the major offset, falling $51.6 million to $37.5 million, with a (12.4)% organic decline attributed to lower activity and customer migration toward higher-margin subscription products.
The segment picture remained uneven. Academia & Government generated $286.9 million of revenue, down (13.7)% on a reported basis but up 0.9% organically. Intellectual Property generated $194.7 million, down (1.6)% reported and down (0.4)% organically. Management cited a return to positive ACV growth in Intellectual Property, while the supplemental disclosure attributes company organic ACV growth primarily to improved product pricing.
Profitability improved on a continuing-operations adjusted basis despite the revenue decline. Adjusted EBITDA was $218.2 million, down (1.8)%, while adjusted EBITDA margin expanded to 45.3% from 41.9%. GAAP operating income was $40.1 million versus $45.9 million, and the continuing-operations net loss was $26.4 million versus $24.9 million. Including discontinued operations, net loss was $80.8 million, compared with $28.3 million, driven by a $62.2 million non-cash LS&H goodwill impairment charge. Adjusted net income increased to $136.0 million and adjusted diluted EPS increased to $0.21.
Cash generation declined during the first nine months. Operating cash flow was $399.0 million versus $468.6 million and free cash flow was $233.1 million versus $276.1 million. The company reported $257.0 million of cash and cash equivalents, including restricted cash, and $4,176.1 million of total debt outstanding at September 30. It repurchased $18.1 million of ordinary shares during the first nine months and completed the LS&H sale on October 6 for $488.4 million of net cash proceeds.
The updated outlook reflects the LS&H divestiture. Clarivate guided for full-year revenue of $1.965B to $1.985B, adjusted EBITDA of $0.865B to $0.885B, adjusted EBITDA margin of 43.0% to 45.0%, adjusted diluted EPS of $0.73 to $0.77, and free cash flow of $320M to $340M. For Q4, the company guided for recurring organic revenue growth of 2.00% to 2.50%, revenue of $490M to $510M, adjusted EBITDA of $215M to $235M, and free cash flow of $85M to $105M. The central execution issue is whether the improving subscription, recurring revenue and ACV trends can offset continued weakness in transactional revenue and produce the guided acceleration in Q4.
Management, verbatim
Third quarter results continued to improve across key metrics, including organic recurring revenue growth and the return to positive ACV growth in the Intellectual Property segment.
Matti Shem Tov, Chief Executive Officer
The growing commercial traction and customer validation from our AI-led innovation within A&G and IP give us confidence in our ability to deliver on our commitments of accelerating sustained organic growth, expanding free cash flow and reducing leverage.
Matti Shem Tov, Chief Executive Officer
We are seeing the benefits of disciplined execution across the business, with improving growth trends, strong margins and continued free cash flow generation.
Michael Easton, Executive Vice President and Chief Financial Officer
Not in the filing
stated, not guessed- Prior outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- GAAP gross margin was not reported.
- GAAP or non-GAAP gross-margin guidance was not reported.
- Forward operating-expense guidance was not reported.
- Forward tax-rate guidance was not reported.
- A prior-quarter comparison was not reported for the disclosed quarterly metrics.
- A quarterly balance-sheet comparison to September 30, 2025 for cash and total debt was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Clarivate's Q3 2026 filing provides the first public disclosure of its quarterly performance and updated outlook after a major divestiture.
Ticker impact
Clarivate reported Q3 2026 results with revenue down 9% and net loss widening to $80.8M, updating its 2026 outlook after the Life Sciences & Healthcare divestiture.
likely pressure as the market prices in weaker revenue and expanded loss
Revenue contraction and a sizable goodwill impairment drive downside risk, while the AI-driven growth narrative provides a counterbalance for longer horizons.
Market effects
The information services sector may see pressure as Clarivate's revenue decline signals broader challenges for data and analytics providers.
US investors could reduce exposure to data‑analytics stocks following the earnings miss.
Modest impact on global data‑analytics and intellectual property markets, with attention on AI‑led growth strategies.
Counterpoint
Despite the loss, Clarivate's AI‑led innovation and streamlined portfolio could position it for stronger future growth.
Key entities
- CompanyClarivate Plc
Global provider of transformative intelligence, listed on NYSE under CLVT.
